Innovative Strategies: Emerging sponsors often bring fresh perspectives to the table. Without the constraints of legacy systems or entrenched practices, they can explore innovative investment strategies, unique asset classes, and untapped opportunities.

• Why It Matters: These sponsors often focus on identifying market gaps or niches that larger sponsors overlook, potentially offering investors first-mover advantages. Example: An emerging sponsor might specialize in a high-growth market or adopt a creative approach to value creation, such as leveraging advanced technology or targeting underserved asset classes. 
   

Personalized Attention: Smaller sponsors typically operate on a more focused scale, allowing them to deliver personalized service to their investors and advisors. 

• Why It Matters: Advisors and investors can benefit from closer communication, a more hands-on approach, greater transparency, and responsiveness. Example: An emerging sponsor might involve due diligence officers and advisors in product development discussions or solicit feedback on operational processes. 
   

Aligned Interests: Like many established sponsors, emerging sponsors often have “skin in the game,” with their leadership teams investing alongside their clients. 

• Why It Matters: This alignment of interests ensures the sponsor is as invested in the success of the offering as the investors themselves.
   

Potential for Higher Growth: While larger sponsors may focus on stabilizing existing portfolios, emerging sponsors are often in growth mode, which can lead to outsized opportunities for investors. 

• Why It Matters: Early-stage investments with a promising sponsor can provide significant upside if the sponsor successfully executes its strategy.
   

 

 

 

 

 

 

This communication is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. SGS does not provide investment recommendations or advice. All investment decisions should be made based on your judgment, a thorough review of investment documents, and in consultation with a qualified financial advisor.